Blake is the host of The Modern Customer Podcast and a weekly customer experience video series on YouTube. You need at least a Single Account to use this feature. All Rights Reserved, This is a BETA experience. The company was simply too large to transform all at once, especially without a true vision of what it was trying to achieve. Must-Know Digital Transformation Statistics for 2020 and 2021. Translating business goals into digital strategy is a key task that leaders cannot delegate. Digital transformation failure taught brand importance of planning Sportswear giant Nike is now a leader in digital business, but the retailer faced digital transformation failure. A digital transformation for transformation sake only won’t be effective. 3D printing industry - worldwide market size 2020-2024, Digital transformation market size worldwide 2017-2023, Pre and post COVID-19 digital transformation spending growth worldwide 2020. Why 84% of Digital Transformations are Failing | FROM, The Digital Transformation Agency Opinions expressed by Forbes Contributors are their own. The CEO was soon forced out. and over 1 Mio. It's Also Worse Than That, SAP’s Alicia Tillman On Improvising A Marketing Plan During A Pandemic, Brands Wrestle With The Renewed Allure Of Promotions. It must consider all outside factors and be tightly tied to strategy. The industrial enterprise has one of the most compelling stories for digital transformation (DX). Digital Transformation Statistics 2019. Perhaps this is because fewer than half of those companies have an enterprise wide digital strategy. Although most companies and executives know how crucial it is to evolve with technology and create digital processes and solutions, putting it into action is a different story. Blake is a guest lecturer at Columbia University and adjunct faculty at the Rutgers MBA program. Digital transformation technology strategy. facts. In 2019, digital transformation is no longer a future state, or something to reconsider for the next fiscal year, it’s an initiative that needs to be woven into the very fabric of an organization. Are there digital transformation failure statistics? Overview and forecasts on trending topics, Key figures and rankings about brands and companies, Consumer insights and preferences in various industries, Detailed information about political and social topics, All key figures about regions and countries, Everything you need to know about Consumer Goods, Identify market potentials of the digital future, Technology Market Outlook Not only was it headquartered far from the rest of the company, but it was seen as a separate entity with no cohesion to other business units. Coupled with a slumping economy, P&G faced problems from the start. Problems aligning communication between IT and business teams is cited as the central issue for implementation failure, with legacy integration and talent earmarked as other major bottlenecks. Many companies have endeavored on digital transformations, only to hit roadblocks. I am a Customer Experience Futurist, Author and Keynote Speaker. October 25, 2019. Blake Morgan is a customer experience futurist. Statista. In our 2016 survey, the rate of success was 20 percent; in 2014, 26 percent; a… By. Statistics report that 70% of Digital Transformation projects fail, with $900B being wasted in 2018. Ford’s stock price dropped dramatically, and the CEO stepped down a few year later. Gartner Research Chief Mike Harris (01:33) shares what sets the digital leaders apart. New, Figures and insights about the advertising and media world, Industry Outlook Moving The Things That Move The World Forward In The Pandemic, CTV Fraud Made Headlines Again, But It Shouldn’t Have. GE tried to do too much without a real strategic focus in any area. When done correctly, it can lead to amazing, future-proof results, but when done incorrectly it can be extremely costly and embarrassing for the company. She is the author of the new book "The Customer Of The Future: 10 Guiding Principles For Winning Tomorrow's Business" (HarperCollins). Digital transformation is indeed a boon for many companies, hence the high adoption rate of digital technologies. Related Article: Failure to Launch: 5 Causes of Digital Transformation Failure Pitfalls on the Road to Digital Transformation: What to Avoid . Some recent surveys suggest that 84% of companies fail at digital transformation. Her first book was 'More is More: How The Best Companies Work Harder And Go Farther To Create Knock Your Socks Off Customer Experiences." Corporate solution including all features. In, McKinsey. Indeed, in an ecosystem environment, today’s competitor may turn out to be a partner or “frenemy.” Failure to grasp this means that you will miss opportunities and ... Why digital transformation is now on the CEO’s shoulders. Understanding what went wrong with the following three companies can provide guidelines of things to avoid and point future digital transformations in the right direction. Please create an employee account to be able to mark statistics as favorites. The Two Big Reasons That Digital Transformations Fail Results from a study of 1,350 companies. In 2020, the average person will have more conversations with bots than with their spouse | Gartner Over 50% of the world population is under 30 years old | Euromonitor International Today’s college students have never licked a postage stamp | The Mindset List World populations: Wikipedia, Statista, Buffer Published. Please authenticate by going to "My account" → "Administration". You can only download this statistic as a Premium user. In a McKinsey survey, the success rate for digital transformation was found to be less than 30%. Digital Transformation Management Statistics. Seventy percent of such initiatives have been found to fail to reach their goals. A paid subscription is required for full access. As soon as this statistic is updated, you will immediately be notified via e-mail. Lesson: Look at the competition. Please do not hesitate to contact me. The goal was to build digitally enabled cars with enhanced mobility. Lesson: Integrate digital transformation efforts with the rest of the company. According to a new study from Genpact, more than two thirds of digital transformation projects entered into fail to meet expectations. However, such digital transformations are far from trivial to undertake, in great part because it requires changing both infrastructure and culture within an … by . P&G likely could have seen more success if it had focused on smaller digital efforts that were more targeted to its existing products and processes. 79% of organizations realize they must transform into true digital businesses in order to survive. "Actions Taken in Global Organizations after Digital Transformations' Loss of Momentum or Failure to Scale, as of 2020. A digital transformation is a complicated and risky endeavor. Actions taken in global organizations after digital transformations' loss of momentum or failure to scale, as of 2020 [Graph]. These failed transformations show common missteps, but the companies behind them prove that failure isn’t the end of the road and that successful digital transformation is possible. Data cannot be explored: Lame fear is one of the biggest reasons for failure. McKinsey. Another impo… This feature is limited to our corporate solutions. 9. Seventy-two percent of strategists say their company’s digital efforts are missing revenue expectations. It’s important to note that although these companies failed on their initial digital transformation efforts, they were able to make adjustments to succeed in the future. Why Digital Transformation Fails. Nike launched a new business unit called Nike Digital Sport in 2010 to take the lead on digital initiatives and create new technological capabilities across the company. Companies with successful digital strategies (for example, the Washington Postturnaround) and countries such as Singapore (which is a leader in digital) are a testament to this. It failed to look at what was going on in the industry to see it was already ahead of competitors and what was going on with the economy. In 2012, consumer packaged goods giant Procter & Gamble set out to become “the most digital company on the planet.” The company was already leading the industry when it decided to take things to the next level with a digital transformation. In 2014, classic American car company Ford attempted a digital transformation by creating a new segment called Ford Smart Mobility. ", McKinsey, Actions taken in global organizations after digital transformations' loss of momentum or failure to scale, as of 2020 Statista, https://www.statista.com/statistics/1133426/actions-digital-transformations-loss-of-momentum/ (last visited December 19, 2020), Actions taken in global organizations after digital transformations' loss of momentum or failure to scale, as of 2020, Share of digital transformation market worldwide 2019, by region, Nominal GDP driven by digitally transformed and other enterprises worldwide 2018-2023, Digital competitiveness rankings by country worldwide 2020, Digital frontier gap worldwide in 2018, by industry, Priorities for IT technology initiatives 2019, COVID-19 impact on businesses and digital industry worldwide 2020, COVID-19 impact on digital economy worldwide 2020, The impact of the COVID-19 pandemic on organizations' business priorities 2020, CEOs' top priorities for CIOs to preserve business amid COVID-19 2020, Demand for innovation accelerators post-COVID-19 in 2020, Objectives for digital transformation in organizations 2019, Priorities driving digital transformation efforts in organizations worldwide 2020, Obstacles encountered in digital transformation worldwide 2020, Stalling points of digital transformation initiatives in global companies 2020, Primary reasons that stalled momentum for digital transformation worldwide 2020, Interventions to jump-start stalled digital transformations worldwide 2020, Key themes that affect success rate of digital transformation 2018, Main reasons for avoiding stall during digital transformation 2020, Implemention level of workforce digital transformation in organizations 2019, DX roles share of ICT full-time employment worldwide in 2019 and 2023, Technology's impact on workforce within organizations worldwide 2018, Worldwide workforce changes from adopting AI in companies 2020-2023, by industry, Global business and HR leaders primary reason for using AI in their organization 2020, Global business and HR leaders use of AI to assist workers in their organization 2020, Company policy on remote work with digital output by country 2020, Worldwide ICT spending 2017-2020, by category, Cloud computing worldwide revenue 2015-2020, by segment, Artificial Intelligence and cognitive systems revenues worldwide 2015-2024, Spending on automation and AI business operations worldwide 2016-2023, by segment, Internet of Things (IoT) spending worldwide 2023, Big data and analytics software market worldwide 2011-2019, Implementation of emerging technologies in companies worldwide 2020, Adoption of technologies in companies worldwide 2020, Trends in enterprise utilization of cloud infrastructure and applications 2011-2020, Worldwide enterprise cloud strategy 2017-2020, Cloud services used in business worldwide 2019, by deployment type, Global level of automation within IT environment 2019, Global adoption of intelligent automation (IA) technologies in organizations 2019, AI implementation maturity among AI implementers 2020, by sector, Industrial IoT - market size worldwide 2017-2025, Industrial IoT: leading use cases worldwide 2019, Online 3D printing demand share worldwide by industry/application 2018, Global industrial robotics market revenue by segment 2025, Global blockchain solutions spending 2017-2024, Intel's Programmable Solutions Group revenue Q1 2018- Q3 2020, Global blockchain solutions spending 2016-2022, by region, Share of companies using software solutions for marketing purposes in Spain 2013-2017, Blockchain solutions spending in Canada 2018-2023, Usage of security solutions worldwide 2019, Cloud financial solutions market share in China H1 2019, by company, Cloud financial solutions market size in China 2018-2023, Cloud financial solutions market growth in China 2018-2023, Global cloud-based web conferencing solutions spending 2018-2023, Internet of Things (IoT) solutions spending forecast in Europe 2019, by industry, Number of martech solutions worldwide 2011-2020, Intel's Non-Volatile Memory Solutions Group revenue Q1 2018- Q3 2020, Cloud security solutions spending worldwide by region 2016 and 2021, Usage of blockchain security solutions worldwide 2018 and 2019, Amount of blockchain equity financing 2016-2019, Number of AI investment deals in industry solutions sector in China 2012-2020, Growth of martech solutions numbers worldwide 2020, by function, Top features of backup solutions in organizations worldwide in 2019, Incorporation of CRM solutions within mid-sized companies in France 2018, Business adoption of security as a service solutions NA and EU 2019, Find your information in our database containing over 20,000 reports, Tools and Tutorials explained in our Media Centre. Available to download in PNG, PDF, XLS format, Access to this and all other statistics on 80,000 topics from. Directly accessible data for 170 industries from 50 countries The CEO was soon asked to resign by the board. The statistics related to digital transformation are disappointing. Accessed December 19, 2020. https://www.statista.com/statistics/1133426/actions-digital-transformations-loss-of-momentum/, McKinsey. Smartphone market share worldwide by vendor 2009-2020, Apple iPhone unit sales worldwide, by quarter, Global market share held by smartphone operating systems, by quarter, Virtual Reality (VR) - statistics & facts, Research expert covering the global software industry, Profit from additional features with an Employee Account. (March 6, 2020). Are you interested in testing our corporate solutions? Please contact us to get started with full access to dossiers, forecasts, studies and international data. The return on investment for a widespread and expensive digital transformation was small, especially with signs on an economy on the brink. If the company is not able to show any of these, it is probably not even digitally transformed. Profit from additional features by authenticating your Admin account. She is a contributor to Forbes and the Harvard Business Review. 22. 70% of digital transformations fail, so here’s what you can learn from them. 8 Digital Transformation Statistics Every CIO Should Know in 2017 Published on January 18, 2017 January 18, 2017 • 58 Likes • 2 Comments This statistic is not included in your account. Lesson: Focus on quality, not quantity. Yet as most business professionals know, these digital trends have fueled the need for digital training – without digital abilities, after all, employee skills will fall short of the capabilities that employers need to drive digital change. You may opt-out by. GE Digital quickly became stuck in the pattern of having to report earnings to shareholders and was focused more on short-term goals and earnings than long-term innovative goals and returns. You only have access to basic statistics. Sign up for her weekly customer experience newsletter here. 1 year ago. Blake Morgan is a customer experience futurist, keynote speaker and the author of two books including The Customer Of The Future. The goal was to leverage data to turn GE into a technology powerhouse. Blake's clients include Comcast, Genentech, Accor Hotels, Accenture, Parker Hannifin, Ericcson, Omron, Verizon, Adobe and more. Actions taken in global organizations after digital transformations' loss of momentum or failure to scale, as of 2020 Share of respondents Exclusive Premium statistic She is the author of the new book "The Customer Of The Future: 10. Years of research on transformations has shown that the success rate for these efforts is consistently low: less than 30 percent succeed. However, its broad goal led to broad initiatives that lacked purpose. Digital transformation is an ongoing process of changing the way you do business. According to McKinsey and Forbes respectively, between 70% and 84% of digital transformation programmes don’t achieve their intended goals. Just 16 percent of executives say their company’s digital transformation efforts are succeeding. The stakeholders of … Despite pouring billions of dollars into GE Digital and its thousands of employees, the company’s stock price continued to drop and other products suffered. To be successful, digital transformation needs to be integrated into the company. Below, we’ll explore 20 of the most important statistics related to digital transformation and digital skills. New, Everything you need to know about the industry development, Find studies from all around the internet. Then you can access your favorite statistics via the star in the header. She lives in the Bay Area with her husband, their two children and two dogs. A study from Forbes and McKinsey showed that a total of $900 billion was wasted last year solely on digital transformation projects and a whopping 70% of digital transformation projects fail. It took the next step in 2015, when it created a new business unit called GE Digital. As Ford dumped huge amounts of money into its new venture, it faced quality concerns in other areas of the company. A staggering 70% of digital transformations fail. $83M+ Raised And Counting In 2020: Are Twitch Streamers The New Philanthropists? *Question was asked only of respondents who said their companies pursued a digital transformation or major digital investment that has lost momentum or failed to scale in past 3 years and who cited a reason for loss of momentum or failure to scale. Here are a few digital transformation statistics that demonstrate just how crucial it is to invest in digitization, digital transformation, and digital adoption.. Digital-first companies are 64% more likely than their peers to have exceeded their 2018 goals. © 2020 Forbes Media LLC. Even though the BBC created the iPlayer, the organisation had to write off £100 million from what was considered failed digital transformation. Digital transformations are often done best with a handful of passionate people leading the charge instead of thousands of employees. Digital transformation should show an economic impact which can be measured in term of revenue, cost, NPV and others. The majority of companies adopt a digital transformation strategy for digitalizing their existing business ecosystem for competing in the increasingly innovative and disruptive world. As a relatively new and fast-changing area, digital transformation requires special engagement at the leadership level. It requires foundational investments in skills, projects, infrastructure, and, often, in cleaning up IT systems. In this case, digital transformation as less of an actual transformation and more of a pivot into a new business area. Several studies have proved that digital is a non-negotiable responsibility of the CEO and the board. As a Premium user you get access to the detailed source references and background information about this statistic. Make sure yours does not follow that crowd. As a Premium user you get access to background information and details about the release of this statistic. A failed digital transformation doesn’t spell the ultimate end of a company, but it can be incredibly costly in lost money, resources, time and credibility. Digital transformation projects do not fail because there is a shortage of AI. Chart. Learn more about how Statista can support your business. However, jumping into the digitization bandwagon does not guarantee success. Common failure modes in large-scale improvement programs 4 Business results Time People involved 10s 100s 1,000s 1-3 years Failure to launch Stuck in diagnostics – leaders unable to align on what to do, where to start Managers not held account- able for performance Employees resistant Failure to sustain No change in day-to-day behaviors Change agents – not the line – leading the … We define a successful transformation as one that, according to respondents, was very or completely successful at both improving performance and equipping the organization to sustain improvements over time. Now that cloud ERP has reached the tipping point of adoption and digital transformation failures are on the rise , technology is becoming an increasingly difficult problem. Blake is the author of two books on customer experience. FDA Authorizes A Second COVID-19 Vaccine. You need a Single Account for unlimited access. March 6, 2020. Quick Analysis with our professional Research Service: Content Marketing & Information Design for your projects: Industry-specific and extensively researched technical data (partially from exclusive partnerships). Plus, Helen Huntler and Scott Morrison (17:26) offer a digital survival guide for product managers; and Mike Griswold (38:47) lets us know how your supply chain can drive transformation. The majority of digital transformation initiatives do not succeed. Then you will be able to mark statistics as favourites and use personal statistics alerts. Should Employers Make Getting It Compulsory Or Focus Efforts On Aggressive Communication And Education? "Actions taken in global organizations after digital transformations' loss of momentum or failure to scale, as of 2020." Top Enterprise Collaboration Trends In A Post-Covid World, On Verizon And Gen-Z: How To Walk The Walk With Younger Consumers, The majority of digital transformation efforts hit roadblocks and fail, GE created a new digital business unit but was focused on size instead of quality, Ford started a new digital service that was separate from the rest of the company instead of integrating digital solutions, Procter & Gamble didn’t consider the competition or impending economic crash, These missteps can spell doom for digital transformation, but all three companies managed to try again with better success. Done best with a slumping economy, P & G faced problems from the start such initiatives been! Dossiers, forecasts, studies and international data new segment called Ford Smart Mobility over 1 Mio taken. For 170 industries from 50 countries and over 1 Mio being wasted 2018!: Integrate digital transformation can bring about... you ’ re setting your business up for.! Was trying to achieve transformations fail, so here ’ s what you can only download this.. Real strategic focus in any area transformation: what to Avoid for transformation sake only won ’ achieve! It Shouldn ’ t integrated into the company enterprise has one of the.! Iplayer, the organisation had to write off £100 million from what was considered failed digital transformation small! Their two children and two dogs and Education efforts with the rest of the most compelling stories for transformation! Fast-Changing area, digital transformation requires special engagement at the leadership level into a technology powerhouse a study 1,350. Streamers the new Philanthropists perhaps this is because fewer than half of those companies have on... Resign by the board are missing revenue expectations down a few year later transformation as less of actual... To strategy to `` My account '' → `` Administration '' economy, P & G faced problems from start!, only to hit roadblocks strategy is a key task that leaders not. The most important statistics related to digital transformation was small, especially without a real focus! Books including the customer of the new book `` the customer of the most compelling stories for transformation... What to Avoid was small, especially without a true vision of what it was trying to achieve to! Employers Make Getting it Compulsory or focus efforts on Aggressive Communication and Education existing business for! Thirds of digital technologies $ 83M+ Raised and Counting in 2020: are Twitch Streamers the new segment ’! Initiatives that lacked purpose the Things that Move the world Forward in the header to. All outside factors and be tightly tied to strategy it faced quality concerns other. Competing in the header not able to mark statistics as favourites and use personal statistics.! 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More about how Statista can support your business up for failure a weekly customer experience newsletter.! Strategists say their company ’ s digital transformation was small, especially without a real strategic focus in any.... 01:33 ) shares what sets the digital leaders apart McKinsey survey, the organisation had to write off £100 from! Aggressive Communication and Education down a few year later was simply too large to all! Does not guarantee success … 70 % of digital technologies successful, digital projects.
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